Mumbai: More than half of the sugar mills in the state may remain closed in the next crushing season due to a possible shortage of sugarcane and mounting financial pressure on the industry, Cooperation Minister Babasaheb Patil said in the Legislative Council on Tuesday, Agrowon reported.
Patil said the coming kharif season may face drought-like conditions, which could lead to a shortage of sugarcane. He noted that the Fair and Remunerative Price (FRP) for sugarcane has been increased six times in the past six years, while the Minimum Selling Price (MSP) of sugar has remained unchanged at Rs 31 per kilogram since 2019. As a result, sugar mills are facing financial strain.
During the discussion, BJP leader Sadabhau Khot raised concerns about alleged irregularities in sugar mills, including manipulation of weighbridges, reduction in cane weight and lower recovery levels. He also demanded that the rule requiring a minimum distance of 25 kilometres between two sugar mills be scrapped.
Khot claimed that farmers are being cheated due to reduced weight and recovery. He said the average weight of sugarcane after crushing has declined by 10 to 15 percent during the current season. He suggested installing weighbridges outside mills under the supervision of district collectors and sugar department officials and linking them to the government’s online system.
Responding to the allegations, Patil said weighbridges at cooperative sugar mills are inspected by the Legal Metrology Department. Out of 210 mills in the state, inspections have been conducted at 113 during the current season. Special inspection teams have also been deployed.
He said one mill in Ahmednagar was found guilty of irregularities and action has been taken against it. According to the minister, excessive rainfall this year has resulted in green-looking sugarcane but with lower sugar recovery, while poor crop growth has also led to reduced cane weight.
Patil said the government has withheld Rs 500 crore from private sugar mills and defended the rule requiring a 25-kilometre distance between mills. The rule ensures that factories receive adequate sugarcane supply, he said, adding that without sufficient raw material the industry cannot survive.
He also pointed out that many mills have expanded their capacity and set up units to produce by-products such as ethanol. However, mills need to operate for at least 150 days to cover administrative expenses, while currently most mills are running for only about 90 days.
The minister said sugar mills are legally required to pay the FRP to farmers, forcing some mills to take loans from banks and institutions such as the National Cooperative Development Corporation to meet payments.
Patil added that sugar demand in the domestic market is weak and mills are receiving a limited sales quota. Although several mills in the state have the capacity to produce ethanol from B-heavy molasses, Maharashtra has received only a 20 percent quota. The state plans to request Union Cooperation Minister Amit Shah to increase the quota.
He warned that unless the current issues are resolved, only about half of the sugar mills in Maharashtra may remain operational in the next season.
During the debate, Khot questioned the government’s approach and said farmers should be free to decide where to send their sugarcane. He alleged that a group controls both cooperative and private sugar mills in the state.
In response, Patil said criticism was unfair, noting that some mills were purchased by the government only after repeated tenders failed to attract buyers.
